The results of the ultimatum game illustrate that
a. people's behavior is often driven by an innate sense of fairness.
b. homo economicus is a good description of people's behavior.
c. self-interest brings out the most efficient economic outcome.
d. people will always prefer a small gain to no gain.
a
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The circular flow model illustrates that aggregate spending in the product markets equals 70 percent of aggregate income earned in the factor markets
a. True b. False Indicate whether the statement is true or false
The price elasticity of supply when the supply curve is Q = 5 is
A) 5. B) perfectly inelastic. C) perfectly elastic. D) Cannot be calculated from the information provided.
An electric utility is going to use a block-pricing schedule. They plan to charge P1 for the first Q1 units and P2 for the subsequent units. The units sold at P2 are the total units sold, Q2, minus the total units sold at P1. The inverse demand curve is P = $100 - Q, and the marginal and average cost is $40. Use calculus to solve for P1, P2, Q1, Q2
What will be an ideal response?
Product differentiation that makes the product ________ is horizontal differentiation.
A. less expensive to produce than the rival's product B. better for some consumers and worse for others C. more similar to the rival's product D. better than a rival's product from everyone's perspective